Logistics company Gati has posted total consolidated revenues of Rs 404.94 crore for the quarter ended September 30. This was a decrease of 1.67% year-on-year from Rs 411.85 crore in the same quarter last year. On a sequential basis, total revenues decreased 2.71% from Rs 416.24 crore.
Note for the current quarter, Gati has not disclosed revenues from its ecommerce division, Gati e-connect. The company’s ecommerce business had posted revenues of Rs 45 crore in the preceding quarter. At the time Gati’s director of finance Sanjeev Kumar Jain had said that growth is “primarily led by our e-commerce business, which almost constitutes 11% of our total revenue.”
– The company posted a net profit of Rs 5.8 crore for Q2FY16, a decline of 16.15% from Rs 6.94 crore in the same quarter last year.
– The express distribution and supply chain segment reported revenues of Rs 350.45 crore, an increase of 1.91% from Rs 343.88 in Q2 FY15. Profit before tax for the segment stood at Rs 21.51 crore, a sharp decline of 28.46% from Rs 30.07 crore in the same quarter last year. The segment accounted for 86.54% of the total revenues.
– Employee benefit expenses were up nearly 16% and stood at Rs 44 crore as against Rs 38 crore in the year-ago period. Meanwhile, expenses related to depreciation were at Rs 9.76 crore as compared to Rs 7.60 in the corresponding quarter last year.
Other developments and need to know
– The company is awaiting clarification from the Reserve Bank of India on matters pertaining to foreign currency convertible bonds (FCCBs) issued by the company. In the meanwhile, the trustee of the bond holders has filed a civil suit in the Secunderabad Court for specific performance, which the company is contesting. In the third quarter of FY15, the company said that it was looking to raise Rs 120 crore to expand its e-commerce business via FCCBs.
– During the quarter, Gati announced that the Delhi High Court had pronounced an order in favour of the company in a case against Air India and upheld the award of Arbitral Tribunal. Under this award, Gati is entitled to receive around Rs 26 crore from Air India. Gati had partnered with Air India for dedicated freighter service in May 2007. Due to certain dispute the service had to be discontinued from March 2009. The matter was referred to Arbitration.
Image source: Flickr user Gwan Kho